Siemens Aktiengesellschaft (ETR:SIE) reported record third-quarter orders, profit and free cash flow for fiscal 2026, supported by demand for data-center infrastructure, industrial software and automation products. The company raised its group earnings outlook after the first nine months while maintaining revenue-growth expectations toward the upper half of its prior range.
Chief Executive Officer Roland Busch said Siemens delivered “another record third quarter” despite what he described as a persistently volatile geopolitical environment. Group orders rose 14% year over year to an all-time high of €27.9 billion, producing a book-to-bill ratio of 1.34 and lifting the company’s order backlog to a record €132 billion.
Smart Infrastructure Sets Order Record
Smart Infrastructure posted the strongest order momentum among Siemens’ businesses. Orders climbed 42% to a record €8 billion, driven by large data-center-related projects in the U.S. and Europe, as well as growth in other end markets. The division’s electrical products and electrification businesses recorded order increases of 58% and 55%, respectively.
Chief Financial Officer Veronika Bienert said order growth excluding data-center-related business was still in the high teens. Smart Infrastructure’s backlog reached €23.7 billion, which she said provides confidence for continued growth into fiscal 2027.
Division revenue rose 13%, including 20% growth in electrification and 18% growth in electrical products. Its profit margin increased 120 basis points to 20%. An impairment tied to the e-mobility charging business partly offset positive effects from U.S. tariff refunds. Bienert said the net effect of tariffs and the impairment was 50 basis points, implying an operational margin of 19.5%.
Siemens raised Smart Infrastructure’s full-year comparable revenue-growth outlook to 10% to 11%, from its prior range, and increased its margin outlook by 50 basis points to 18.5% to 19.5%.
Busch said data-center demand remains driven by the expansion of cloud and artificial-intelligence infrastructure. Siemens recorded nearly €6 billion of data-center orders in the first nine months, up by a triple-digit rate from a year earlier, while data-center revenue grew more than 50% to €3.1 billion.
The company said it is preparing for a shift toward 800-volt direct-current power architectures for AI factories, though Busch said adoption would likely occur in stages over the next four to five years, with hybrid AC and DC systems expected in the early phase. Siemens expects initial 800-volt DC pilots in 2027.
Digital Industries Benefits From Automation and Software Demand
Digital Industries orders rose 9% to €4.9 billion, while revenue increased 10%. Automation orders grew 11%, supported by short-cycle business, and automation revenue increased 7% to €3.1 billion. The division’s software revenue rose 15%, with electronic design automation revenue growing more than 30%.
Digital Industries’ profit margin improved sharply to 18.7%, supported by software mix, economies of scale, automation productivity measures, and the integration of Altair and Dotmatics. Integration-related costs from the acquisitions represented 70 basis points of the quarterly margin, Bienert said. Free cash flow was nearly €1.5 billion, an all-time quarterly high for the division.
In China, Digital Industries automation orders rose 17% and revenue increased 9%. Busch said there was some slowing in June, followed by improved momentum in July. Siemens’ local China portfolio, also described as its value-for-money or smart-products offering, grew at about 30% year to date, according to Busch.
Bienert said conditions remain mixed in Europe, where capacity utilization in several industrial markets remains relatively low. However, she said order recovery is underway, while the U.S. continued to grow and AI-related investment supported core manufacturing industries.
Siemens maintained its full-year Digital Industries guidance for revenue growth of 7% to 10% and a profit margin of 17% to 19%. For the fourth quarter, the company expects automation orders to rise clearly year over year, while software orders are expected to decline against a prior-year period that included exceptionally high EDA bookings.
Mobility Backlog Grows as Software Strategy Advances
Mobility orders totaled €7.6 billion, resulting in a book-to-bill ratio of 2.35 and increasing backlog to €58 billion. Revenue rose 6%, led by low-double-digit growth in rail infrastructure. The division’s margin was 8.6%, affected by a less favorable project mix and slightly higher severance costs.
Siemens said its fourth-quarter pipeline includes the booking of most of a €3 billion contract with Italo Holding, covering rolling stock and a 30-year service agreement. The company maintained its Mobility outlook for 5% to 7% revenue growth and an 8% to 10% margin, with the expected margin outcome toward the lower end of the range.
Busch also highlighted Siemens’ expanding industrial AI and software portfolio. Digital business revenue rose 18% on a nominal basis during the first nine months, exceeding the company’s 15% ambition level. The company introduced Intelligence Center X, an offering designed to help customers orchestrate AI agents and deploy industrial AI in live operations.
Siemens said its Eigen engineering agent has attracted hundreds of customers across more than 30 countries. Busch said the company continues to use license and software-as-a-service models for its software offerings while considering future monetization models tied to software usage and AI agents.
Outlook Raised; Healthineers Spin-Off Process Continues
Following the nine-month performance, Siemens raised its fiscal 2026 outlook for earnings per share before purchase-price allocation to €11.20 to €11.50, an increase of €0.45 at the midpoint. The company continues to expect group revenue growth in the upper half of its 6% to 8% guidance range.
Siemens also said it received binding tax-authority decisions that allow it to proceed with the planned deconsolidation of Siemens Healthineers. The company expects shareholder votes at the annual general meetings of both companies in February 2027 and said it is working through contractual details.
In July, Siemens began a new share-repurchase program of up to €6 billion over as many as five years. The company bought back €400 million of shares during the program’s first month.
About Siemens Aktiengesellschaft (ETR:SIE)
Siemens Aktiengesellschaft, a technology company, focuses in the areas of automation and digitalization in Europe, Commonwealth of Independent States, Africa, the Middle East, the Americas, Asia, and Australia. It operates through Digital Industries, Smart Infrastructure, Mobility, Siemens Healthineers, and Siemens Financial Services (SFS) segments. The Digital Industries segment provides automation systems and software for factories, numerical control systems, servo motors, drives and inverters, and integrated automation systems for machine tools and production machines; process control systems, machine-to-machine communication products, sensors and radio frequency identification systems; software for production and product lifecycle management, and simulation and testing of mechatronic systems; and the Mendix cloud-native low-code application development platform.
